The launch of the Hodl Zero Knowledge Fund
Introducing the Hodl Zero Knowledge Fund
Hodl is pleased to introduce the Hodl Zero Knowledge Fund (ZK Fund), a new strategy-driven fund that combines a wide variety of Market-Neutral and High-Sharpe strategies to generate a stable return of 20-25% gross on an annual basis. The fund is ideal for for investors who seek risk-adjusted returns and stability in the volatile digital assets market.
The Hodl ZK Fund is the next iteration of the previously known Hodl Delta Neutral & Market Neutral Fund. The transition to the new strategy and name took place on October 1st.
A fund built on Zero Knowledge principles
The name Zero Knowledge Fund is inspired by the cryptographic concept of Zero Knowledge Proofs: the idea that you can verify information without revealing all underlying details. This reflects the core philosophy of the fund. Investors receive full transparency on performance, risk metrics and reporting, while the specific mechanics of the strategies remain proprietary in order to protect their effectiveness and competitive edge.
Market-neutral and High-Sharpe strategies
The ZK Fund aims to generate stable, risk-adjusted returns with limited directional exposure. It does so by combining two main pillars:
- Market-neutral strategies that seek to profit from mispricing, arbitrage, and inefficiencies across digital assets, rather than from simple price appreciation. These approaches focus on hedged positions, basis trading, and other neutral exposures that aim to reduce sensitivity to broad market moves.
- High-Sharpe strategies that are designed to maximise return per unit of risk. These strategies make use of data-driven models, funding rate opportunities and selective directional trades where the risk-reward profile is strongly in favour of the investor.
Together, these pillars are implemented through a diversified, algorithmic, and actively managed approach, with the objective of offering a consistently high Sharpe ratio over time.
Advanced technology and partnership with Growity
Behind the ZK Fund is a close collaboration between Hodl’s investment team and Growity, the technical partner founded by Hodl CIO and co-founder Nick Friedrich. Growity develops and maintains the algorithms and tooling that power the strategy, including:
- Systematic models to detect pricing inefficiencies
- Tools to monitor and adjust hedges in real time
- Infrastructure to scale strategies across multiple venues and instruments, including Centralized and Decentralized exchanges
This combination of professional fund management and in-house quantitative technology enables the ZK Fund to adapt quickly to changing market conditions and continuously refine its models.
Return target and risk profile
The ZK Fund targets an average gross annual return of 20-25%, with the ambition to further improve this as new algorithms and strategies are implemented over time. The focus is not on chasing the highest possible short-term returns, but on delivering robust, repeatable, and risk-adjusted performance.
Key characteristics of the fund include:
- Limited dependency on overall market direction
- Strong emphasis on capital preservation and drawdown control
- Diversification across strategies, instruments, and venues
- A framework that continuously evaluates strategies based on their Sharpe ratio and contribution to the portfolio
- Regulated Fund Structure in Gibraltar
Backtest data and first results
Over the past months, we have successfully run the first new set of strategies, both in a backtest environment and in actual deployments. Our most recent backtest results from 20-04-2025/14-11-2025 provided a Sharpe Ratio of 6.32 and a Sortino Ratio of 12.75. You can find the full backtest data in the Key Fact Sheet that is available at the bottom of this page.
The implementation of the first strategies in the ZK Fund led to a monthly performance of +2.49% in October, despite the market-wide crash on the 10th of October, proving its resiliency in high-volatile environments. We will share more insights on the performance of the ZK Fund and the mentioned ratios soon.
Timeline and access
From October through December, the fund will remain temporarily closed for new investors as we continue implementing, optimizing, and scaling these new strategies.
The fund will open in January 2026 for a limited group of investors, and we are currently open to receive applications. Priority access will be granted to clients already invested in other Hodl funds.
Want to learn more about the ZK Fund?
If you would like to learn more about the Zero Knowledge Fund, or apply to be among the first group of investors in January, we invite you to get in touch with us.
Please contact our Head of Investor Relations, Rémond Timmerman via +31 85 060 7077 or [email protected].
You can also schedule a meeting through the following link: https://meetings.hubspot.com/remond-timmerman/zk-meeting
